State budget balance still guaranteed

Domestic revenue promotes the role in the period ofepidemic. Photo: Thuy Linh

Import and export revenues continue to decline

For the state budget revenue, the most inconsistent factor is the issue of imports and exports. Due to the impact of the Covid-19 epidemic, the growth momentum of import-export turnover in the first two months of the year has slowed down. Statistics show that export turnover of goods in February 2020 was estimated at USD 18.6 billion, up 1.5 percent compared to the previous month. Accumulated in two months, export turnover is estimated at USD 36.9 billion, up 2.4 percent over the same period in 2019. Imported goods in February 2020 is estimated at USD 18.5 billion, down 0.5 percent compared to the previous month. Accumulated in two months, import turnover is estimated at USD 37.1 billion, up 2.4 percent over the same period in 2019. Vietnam's trade balance of goods in the first two months of 2020 is estimated at USD200 million trade deficit.

The aforementioned situation led to budget revenue from import and export activities carried out in February 2020 was estimated at VND 22.2 trillion, cumulative revenue in two months reached VND 48.2 trillion, equaling 14.3 percent of the estimate, down 10.8percent over the same period in 2019.

Due to the impact of the Covid-19 epidemic, the demand for crude oil decreased sharply, the price of crude oil on the world market was low (around USD 50 / barrel). However, due to the delay in payment, the average oil price paid in two months remained at USD68 / barrel, USD 8 higher than the estimated price; while production is estimated at 1.8 million tons, equal to 19.9 percent of the plan. Therefore, the revenue from crude oil in February was estimated at VND 3.9 trillion, in the first two months was VND 11.2 trillion, equaling 31.9 percent of the estimate, up 44.4 percent compared to the same period in 2019.

In return for these difficulties, the domestic revenue collection is quite positive. The total revenue in the two months reached VND 233.2 trillion, equaling 18.4 percent of the estimate, up 12.8 percent over the same period in 2019. This revenue has great merit of the production and business areas. By the end of February, there were 9 out of 18 revenues, excellent taxes (over 17 percent), of which a number of large revenues such as: foreign-invested enterprises sector was estimated at 20.8 percent; non-state industrial, commercial and service sector reached 18.4 percent; personal income tax of 18.8 percent; lottery revenue reached 33.6 percent; dividend collection, the remaining profit reached 21.6 percent; land use fee is estimated at 22.5 percent.

Nine of 18 remaining revenue is less than 17 percent including state-owned enterprises is estimated at 16 percent; environment protection tax is estimated at 14.4 percent; registration fee is estimated at 13.3 percent; fees and charges are estimated at 15.3 percent; collecting fees for granting mineral resources is estimated at 9.5 percent.

According to the summary from the State Budget Department, Ministry of Finance, in the last two months, 45 out of 63 localities have made progress of making higher general estimate progress of 18 percent, eight localities have achieved the average level of 16-18 percent. And 10 localities with low progress (less than 16 percent) were Da Nang, Quang Tri, Hai Phong, Bac Can, KhanhHoa, Thanh Hoa, Lao Cai, Son La, HoaBinh and Lai Chau.

In February alone, the total state budget revenue was estimated at VND 95.1 trillion, contributing to the accumulation of the first two months was VND 276.7 trillion, equaling 18.3 percent of the estimate, up 9, 3 percent over the same period in 2019. Despite the increase, the growth rate is slower than this time in 2019 (22.5 percent) due to the above difficulties.

Mobilizing budgets at all levels for epidemic prevention and control

Regarding expenditure, the total state budget expenditure in February 2020 was estimated at VND 118.7 trillion, the accumulated expenditure in the first two months was about VND 220.6 trillion, equaling 12.6 percent of the estimate, up 11.5 percent against the same period of 2019. Of which expenditure for development investment reached VND 34.7 trillion, equal to 7.4 percent of the estimate, up 114.2 percent compared to the same period in 2019.Interest payment was VND 25.5 trillion, equal to 21.6 percent of the estimate, up 3.9 percent over the same period in 2019; regular expenditure was approximately VND 160 trillion, equaling 15.1 percent of the estimate, an increase of 2.1 percent compared to the same period in 2019, ensuring the compliance with the estimate and the progress of the task.

Regarding development investment expenditure, the total capital plan in 2020 assigned by the Prime Minister is VND 470.6 trillion. As of February 28, 2020, 51 out of 53 (96.2 percent) ministries, central agencies and 100 percent of localities sent reports on allocation of capital plans assigned to the Ministry of Finance with the allocated capital reaching 77.3 percent of the plan assigned to the Central and 98.3 percent of the plan assigned to the locality. The disbursement progress for two months is still slow compared to the requirement (over 10 percent of the estimate), but there was progress compared to the same period in 2019 (double the same period in both schedule and implementation level).

In order to prevent and control Covid-19, both the central and local budgets have increased spending on health activities, ensuring sanitation and activities supporting the control, prevention, and suppression of epidemics. The central budget has set aside VND 517.7 billion for contingency in 2020 to supplement the Ministry of Health to implement epidemic prevention and control activities. In addition, following the Prime Minister's decision, the Ministry of Finance issued 12,760tons of national reserve rice to overcome the consequences of natural disasters, relief and hunger for people on the pre-harvest in early 2020.

According to the Ministry of Finance, up to now, the progress of revenue and expenditure has helped the Central and local budgets at all levels ensure a balance.

In the following months, the Ministry of Finance's leadership is continuing to direct the State Budget Department, the General Department of Taxation, the General Department of Customs and other relevant agencies to assess the impact of Covid-19 on the state budget collection situation in order to have the timely measures in each stage.Solutions such as anti-revenue loss, strengthening risk management, inspection; dealing with problems and urging tax debt recovery; administrative reform, creating favorable conditions for production and business, etc. will still be actively implemented by the Finance sector in order to best fulfill the assigned tasks of balancing the State budget.